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Gold prices (XAU/USD) remained stable near $4,800 on Friday as market participants speculated about a potential US-Iran peace deal and renewed expectations of Federal Reserve rate cuts. The precious metal traded at $4,807, reflecting a 0.35% intraday gain and positioning for a fourth consecutive weekly rise. The US-Iran diplomatic developments and the Fed's policy trajectory are key drivers, with investors seeking safe-haven assets amid geopolitical tensions and monetary policy uncertainty.
The stability in gold prices highlights its role as a hedge against geopolitical risks and inflation. Traders are closely monitoring the Fed's upcoming meetings for clues about rate cut timelines, which could influence the dollar's strength and gold's appeal. A US-Iran deal might reduce market volatility, potentially capping gold's upward momentum. Conversely, prolonged tensions or delayed Fed easing could extend the bull run.
For MENA investors, the interplay between geopolitical developments and central bank policies remains critical. The Gulf region's exposure to global oil markets and its reliance on USD-denominated assets mean any Fed action will have ripple effects. Traders should watch the Fed's June meeting and Iran-related diplomatic updates for directional cues. Gold's technical support at $4,750 and resistance at $4,900 could also shape near-term price action.
